Pertamina International Shipping Prepares Investment of US$ 1.6 Billion Until 2030

Jakarta, December 29, 2021 - PT Pertamina International Shipping (PIS) has prepared an investment of US$ 1.5 billion – US$ 1.6 billion for the development and investment of the company's business until 2030.

CEO of Pertamina International Shipping Erry Widiastono said the investment needs are in line with national and global energy needs, emphasizing environmental factors and energy transition. The investment needs will be fulfilled from internal equity or looking for other funding sources or new capital injection.

“PIS will anticipate future developments in the direction of the shipping business, on greener vessels. For example, ships for transporting gas such as LPG, LNG, and others. Later, we will also see further developments in the renewable energy sector," said Erry in the Linking Investment and Business Prospect of Integrated Marine Logistics in Indonesia: An Outlook 2022 webinar, which took place on Tuesday, (28/12).

As a Subholding Integrated Marine Logistics of PT Pertamina (Persero), PIS has the opportunity to become a bridge for energy transition. The presence of new and renewable energy is a necessity, but the need for hydrocarbon-based energy will continue to exist during this transition period.

This still-large energy demand is reflected in economic conditions, both nationally and globally, which are currently recovering and have the potential to grow. "We hope that after this pandemic, growth will increase, and as our analysis grows, there will also be growth in energy consumption and will lead to national and regional energy needs," he explained.

Not only serving transportation services for energy commodities such as crude oil, fuel, and gas. Erry said that PIS also has a shipping business for non-energy commodities. He is optimistic that as the world economy recovers, global demand and logistics turnover will also increase.

PIS' commitment to the environment is also realized through a green integrated marine logistics company roadmap. "In the future, the business will also focus more on green cargo such as gas cargo. On the bunkering or fuel side, it also leads to greener fuels such as LNG and LPG. Terminal leads to green energy, storage as well. So we are indeed aiming for green energy.”

At the same event, Expert Staff for Macroeconomics at the Ministry of Investment/ Investment Coordinating Board (BKPM) Dr. Indra Darmawan stated about the enormous potential of a business and maritime investment, as well as logistics in Indonesia.

Indra explained that 2022 is the year of new normal. "There is optimism that can guide us through a better next year," he said. This optimism is reflected in the national investment target which was increased from IDR 900 trillion in 2021 to IDR 1200 trillion in 2022.

Although there will be a projected decline in global economic growth from 5% to 4% next year, according to him, there will be an increase in economic growth from 4% to 5% nationally.

"Indonesia will benefit from the high commodity prices in the world energy market and this will have an impact on the shipping industry," he explained.**